SEAGATE TECHNOLOGY HOLDINGS (1STX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1STX - IE00BKVD2N49 - Common Stock
265.1 EUR
+43.1 (+19.41%)
We assign a fundamental rating of 5 out of 10 to 1STX. 1STX was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. 1STX has an excellent profitability rating, but there are concerns on its financial health. 1STX is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year 1STX was profitable.
- 1STX had a positive operating cash flow in the past year.
- Of the past 5 years 1STX 4 years were profitable.
- In the past 5 years 1STX always reported a positive cash flow from operatings.
1.2 Ratios
- 1STX's Return On Assets of 20.29% is amongst the best of the industry. 1STX outperforms 93.94% of its industry peers.
- 1STX has a Return On Invested Capital of 44.46%. This is amongst the best in the industry. 1STX outperforms 93.94% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1STX is below the industry average of 16.24%.
- The 3 year average ROIC (13.27%) for 1STX is below the current ROIC(44.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.29% | ||
| ROE | N/A | ||
| ROIC | 44.46% |
ROA(3y)5.21%
ROA(5y)9.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.27%
ROIC(5y)18.72%
1.3 Margins
- 1STX has a Profit Margin of 17.92%. This is amongst the best in the industry. 1STX outperforms 87.88% of its industry peers.
- 1STX's Profit Margin has improved in the last couple of years.
- 1STX's Operating Margin of 23.34% is amongst the best of the industry. 1STX outperforms 87.88% of its industry peers.
- 1STX's Operating Margin has improved in the last couple of years.
- 1STX has a Gross Margin (37.00%) which is comparable to the rest of the industry.
- 1STX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.34% | ||
| PM (TTM) | 17.92% | ||
| GM | 37% |
OM growth 3Y8.07%
OM growth 5Y10.02%
PM growth 3Y4.52%
PM growth 5Y11.07%
GM growth 3Y5.89%
GM growth 5Y5.48%
2. Health
2.1 Basic Checks
- 1STX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- 1STX has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1STX has less shares outstanding
- 1STX has a better debt/assets ratio than last year.
2.2 Solvency
- 1STX has a debt to FCF ratio of 4.10. This is a neutral value as 1STX would need 4.10 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.10, 1STX is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.19
WACC8.57%
2.3 Liquidity
- 1STX has a Current Ratio of 0.98. This is a bad value and indicates that 1STX is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.98, 1STX is doing worse than 72.73% of the companies in the same industry.
- A Quick Ratio of 0.62 indicates that 1STX may have some problems paying its short term obligations.
- With a Quick ratio value of 0.62, 1STX is not doing good in the industry: 87.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- 1STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 196.43%, which is quite impressive.
- The Earnings Per Share has been growing by 10.31% on average over the past years. This is quite good.
- 1STX shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.56%.
- The Revenue has been decreasing by -2.84% on average over the past years.
EPS 1Y (TTM)196.43%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%65.19%
Revenue 1Y (TTM)31.56%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.26%
3.2 Future
- 1STX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.43% yearly.
- The Revenue is expected to grow by 13.52% on average over the next years. This is quite good.
EPS Next Y44.47%
EPS Next 2Y37.94%
EPS Next 3Y30.15%
EPS Next 5Y27.43%
Revenue Next Year21.96%
Revenue Next 2Y19.85%
Revenue Next 3Y15.93%
Revenue Next 5Y13.52%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 34.07 indicates a quite expensive valuation of 1STX.
- The rest of the industry has a similar Price/Earnings ratio as 1STX.
- When comparing the Price/Earnings ratio of 1STX to the average of the S&P500 Index (27.21), we can say 1STX is valued slightly more expensively.
- The Price/Forward Earnings ratio is 20.20, which indicates a rather expensive current valuation of 1STX.
- 1STX's Price/Forward Earnings ratio is in line with the industry average.
- 1STX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.07 | ||
| Fwd PE | 20.2 |
4.2 Price Multiples
- 60.61% of the companies in the same industry are cheaper than 1STX, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1STX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.68 | ||
| EV/EBITDA | 28.8 |
4.3 Compensation for Growth
- 1STX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1STX has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1STX's earnings are expected to grow with 30.15% in the coming years.
PEG (NY)0.77
PEG (5Y)3.31
EPS Next 2Y37.94%
EPS Next 3Y30.15%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.85%, 1STX is not a good candidate for dividend investing.
- 1STX's Dividend Yield is a higher than the industry average which is at 0.91.
- With a Dividend Yield of 0.85, 1STX pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
- The dividend of 1STX has a limited annual growth rate of 2.08%.
Dividend Growth(5Y)2.08%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1STX pays out 35.38% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1STX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.38%
EPS Next 2Y37.94%
EPS Next 3Y30.15%
SEAGATE TECHNOLOGY HOLDINGS / 1STX.MI FAQ
What is the fundamental rating for 1STX stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1STX.MI.
What is the valuation status of SEAGATE TECHNOLOGY HOLDINGS (1STX.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to SEAGATE TECHNOLOGY HOLDINGS (1STX.MI). This can be considered as Overvalued.
How profitable is SEAGATE TECHNOLOGY HOLDINGS (1STX.MI) stock?
SEAGATE TECHNOLOGY HOLDINGS (1STX.MI) has a profitability rating of 7 / 10.
What is the valuation of SEAGATE TECHNOLOGY HOLDINGS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SEAGATE TECHNOLOGY HOLDINGS (1STX.MI) is 34.07 and the Price/Book (PB) ratio is -1076.49.
Is the dividend of SEAGATE TECHNOLOGY HOLDINGS sustainable?
The dividend rating of SEAGATE TECHNOLOGY HOLDINGS (1STX.MI) is 5 / 10 and the dividend payout ratio is 35.38%.